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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/05/2002 - RESOLUTION 2002-013 WITHDRAWING PRIOR DIRECTION TO AGENDA ITEM SUMMARY ITEM NUMBER: 29 FORT COLLINS CITY COUNCIL DATE: February 5, 2002 FROM: Mark Sears SUBJECT: Resolution 2002-013 Withdrawing Prior Direction to the City Manager to Arrange for the Conveyance of Certain City Property Acquired Through the Natural Areas Program and Providing for a Right of First Refusal in That Property for the Fort Collins Housing Authority. RECOMMENDATION: Staff recommends adoption of the Resolution. EXECUTIVE SUMMARY: On November 2, 1999, Council adopted Resolution 99-133 approving the acquisition of approximately 168 acres of land from Willing Acres Company,the majority of which is to be utilized by the City as the Hazaleus Natural Area. Resolution 99-133 also authorized the future sale of a portion of the property for affordable housing development and granted the Fort Collins Housing Authority a first right of refusal, through February 29, 2000, on the development parcel. On February 15, 2000, Council adopted Resolution 2000-38, extending the time period for the Housing Authority to exercise its right of first refusal to acquire the Development Parcel portion of the Property, due to the fact that further analysis was required at that time both for the City to identify the Development Parcel and for the Housing Authority to determine how the Development Parcel can best be utilized for affordable housing purposes. Since the adoption of Resolution 2000-38,the right of first refusal previously granted to the Housing Authority has expired without being exercised, and it has been determined that the Property may constitute valuable wildlife habitat that is desirable for the Natural Areas program. To allow for the further review of the habitat values of the Property,and for any further analysis that may be required related to the undetermined matters identified in Resolution 2000-38,staff recommends that Council adopt this Resolution to withdraw its direction to the City Manager to dispose of the proposed Development Parcel. If it is determined in the future that a Development Parcel is appropriate on the Property, and the sale of that Development Parcel is desirable at that time, such sale may be considered by the City Council at that time,based on the information then available. The Resolution grants to the Housing Authority a right of first refusal to purchase a Development Parcel,if identified in the future, at a price and upon such terms and conditions determined to be adequate and appropriate at that time. t • RESOLUTION 2002-013 OF THE COUNCIL OF THE CITY OF FORT COLLINS WITHDRAWING PRIOR DIRECTION TO THE CITY MANAGER TO ARRANGE FOR THE CONVEYANCE OF CERTAIN CITY PROPERTY ACQUIRED THROUGH THE NATURAL AREAS PROGRAM AND PROVIDING FOR A RIGHT OF FIRST REFUSAL ON THAT PROPERTY FOR THE FORT COLLINS HOUSING AUTHORITY WHEREAS,on November 2, 1999,the City Council adopted Resolution 99-133 approving the acquisition of approximately 168 acres of land(the "Property")from Willing Acres Company, the majority of which is to be utilized as a City natural area; and WHEREAS, in Section 5 of said Resolution, the City Council granted the Fort Collins Housing Authority(the "Housing Authority") a first right of refusal,through February 29,2000,to acquire a portion of said property (the "Development Parcel') from the City for the purpose of utilizing the same, or a portion thereof, for affordable housing, with the understanding that the proceeds of the sale of the development parcel would be deposited by the City into the natural areas portion of the Building Community Choices Fund; and WHEREAS,on February 15,2000,the City Council adopted Resolution 2000-38,extending the time period for the Housing Authority to exercise its right of first refusal to acquire the Development Parcel portion of the Property,due to the fact that further analysis was required at that . time both for the City to identify the Development Parcel and for the Housing Authority to determine how the Development Parcel can best be utilized for affordable housing purposes; and WHEREAS, since the adoption of Resolution 2000-38, the right of first refusal previously granted to the Housing Authority has expired without being exercised, and it has been determined that the Property may constitute valuable wildlife habitat that is desirable for the Natural Areas program; and WHEREAS,in order to allow for the further review of the habitat values of the Property,and for any further analysis that may be required related to the undetermined matters identified in Resolution 2000-38,staff has recommended that the City Council withdraw its direction to-the City Manager to dispose of the proposed Development Parcel; and WHEREAS, it is the desire of the City Council that if it is determined in the future that a Development Parcel is appropriate on the Property, and the sale of that Development Parcel is desirable to the City at that time,the Housing Authority shall have a right of first refusal to acquire such Development Parcel at the price and upon such terms and conditions as the City Council has at that time determined to be acceptable, for the sole purpose of utilizing the same for affordable housing. NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That prior direction in Resolution 99-133 and Resolution 2000-38 to the City Manager to investigate and carry out the identification and conveyance of a Development Parcel on the Property is hereby withdrawn, in the light of the possible value of the Property as wildlife habitat. Section 2. That until such time as the City Manager determines that some portion of the Property is not desirable for natural area purposes and identifies a Development Parcel appropriate for conveyance, and such conveyance is approved by the City Council by ordinance, the entire Property shall remain a part of the Natural Areas Program,and shall be managed consistent with the related policies and practices. Section 3. That in the event that a Development Parcel is identified on the Property to be conveyed for development, the Housing Authority shall have a right of first refusal to acquire such Development Parcel at the price and upon such terms and conditions as the City Council has at that time determined to be acceptable,for the sole purpose of utilizing the same for affordable housing. Section 4. That upon the sale of such Development Parcel,the fair market value of the property sold at the time of such sale shall be deposited by the City into the natural areas portion of the Building Community Choices Fund. Section 5. That any provisions of Resolution 99-133 or Resolution 2000-38 that are inconsistent with the provisions of this Resolution are hereby superseded and shall be of no further force and effect. Passed and adopted at a regular meeting of the City Council held this 5th day of February, A.D. 2002. Mayor Pro Tern ATTEST: City Clerk RESOLUTION 2000-38 OF THE COUNCIL OF THE CITY OF FORT COLLINS EXTENDING THE TIME PERIOD FOR THE HOUSING AUTHORITY TO EXERCISE A RIGHT OF FIRST REFUSAL TO ACQUIRE CERTAIN CITY PROPERTY WHEREAS,on November 2, 1999,the City Council adopted Resolution 99-133 approving the acquisition of approximately 168 acres of land(the "Property")from Willing Acres Company, the majority of which is to be utilized as a City natural area; and WHEREAS, in Section 5 of said Resolution, the City Council granted the Fort Collins Housing Authority (the"Housing Authority")a first right of refusal,through February 29,2000,to acquire a portion of said property (the "Development Parcel') from the City for the purpose of utilizing the same, or a portion thereof, for affordable housing, with the understanding that the proceeds of the sale of the development parcel would be deposited by the City into the natural areas portion of the Building Community Choices Fund; and WHEREAS, the Housing Authority wishes to exercise the foregoing right of first refusal; however, additional time is required for the City to identify the portion of the Property that should constitute the Development Parcel and be resold by the City,and additional time is also required for the Housing Authority to determine how the Development Parcel can best be utilized for affordable housing purposes; and WHEREAS,the City Council believes that it would be in best interests of the City to extend the period of time within which the Housing Authority can exercise its first right of refusal. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Fort Collins Housing Authority shall have until February 29, 2001, to enter into a binding agreement with the City, upon terms and conditions acceptable to the City Council, for the acquisition of the Development Parcel. Section 2. That, in the event that said agreement has not been approved by the City Council prior to said date, the City Manager shall conduct a process to select a purchaser of the Development Parcel,which process shall emphasize the affordable housing benefits to be generated by the proposals received, and shall make a recommendation to the Council regarding the sale of the Development Parcel to a third party other than the Housing Authority for development purposes, which agreement shall include the terms and conditions of the proposed sale. Section 3. That if the City has not closed on the sale of the Development Parcel to the Housing Authority or some other third party on or before December 31,2001,the City Manager shall present to the Council an ordinance authorizing the transfer of appropriations from such City funds as shall be determined to be appropriate at that time, into the natural areas portion of the Building Community Choices Fund,in an amount equal to the proportional share of the total acquisition cost that is attributable to the Development Parcel, together with interest thereon from the date of the acquisition of the Property. Section 4. That any provisions of Resolution 99-133 that are inconsistent with the provisions of this Resolution are hereby superseded and shall be of no further force and effect. Passed and adopted at a regular meeting of the City Council held this 15th day of February, A.D. 2000. Mayor ATTEST: City Clerk RESOLUTION 99-133 • OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE ACQUISITION OF APPROXIMATELY ONE HUNDRED SIXTY EIGHT ACRES OF LAND AND ASSOCIATED WATER RIGHTS WHEREAS,Willing Acres Company is the owner of approximately 168 acres of land located north of Trilby Road on the east side of Shields Street in Fort Collins,more particularly described on Exhibit"A",attached hereto and incorporated herein by this reference,together with 3 shares of Pleasant Valley Lake Canal Company irrigation water (totaling 119.22 acre feet), referred to collectively as the "Property'; and WHEREAS, Willing Acres Company has agreed to sell the Property to the City for the net amount of$9,752 per acre and $2,000 per acre foot for the associated water rights; and WHEREAS,the land purchase price is substantially below the estimated market value of the property; and WHEREAS, among the objectives of the Natural Areas Policy Plan as adopted by the City Council is to establish a system of publicly owned natural areas to protect the integrity of critical conservation sites, protect corridors between natural areas, preserve outstanding examples of Fort Collins' diverse natural heritage and provide a broad range of opportunities for educational, interpretive and recreational programs to meet community needs; and WHEREAS, City staff and the Natural Resources Advisory Board have reviewed the resource, natural heritage and open space values of the Property, and have determined that a substantial portion of the Property(the"Natural Areas Parcel")would provide avaluable opportunity to advance the objectives of the Natural Areas Policy Plan; and WHEREAS, a portion of the Property, approximately fifty (50) acres in size (the "Development Parcel"),may not be essential for natural area purposes and may be more suitable for future private development; and WHEREAS,Willing Acres Company is unwilling to divide the Property into natural area and development parcels; and WHEREAS,on February 2, 1999,the City Council adopted Resolution 99-16,approving the City's Priority Affordable Housing Needs and Strategies Report,dated February 2, 1999,which sets forth the City's priorities and strategies for the development and enhancement of affordable housing resources in Fort Collins; and WHEREAS,the acquisition of the Development Parcel provides an opportunity to advance the goals and objectives of the Priority Affordable Housing Needs and Strategies Report; and WHEREAS, the acquisition of the entire Property is desirable as a means of acquiring the Natural Areas Parcel,and staff has begun efforts to investigate the resale of the Development Parcel in a manner that would include the development of affordable housing; and WHEREAS, sufficient funds are available and appropriated in the natural areas portion of the Building Community Choices Fund for the acquisition of the real property portion of the Property, additional funds are available in that account for maintenance of the Property following acquisition,and sufficient funds are available in the Water Utility Fund for the acquisition of the water rights associated with the Property; and WHEREAS,the Council has determined that the purchase price and donation of the Property is fair and reasonable and in the best interests of the citizens of the City; and WHEREAS,the Natural Resources Advisory Board has recommended to the Council that the acquisition of the Property be completed;and WHEREAS, the Council has determined that it is appropriate to name the Natural Areas Parcel the"Hazaleus Natural Area". NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1" That the City Manager be, and hereby is, authorized to execute such documents as are necessary for the City to acquire the Property consisting of approximately one hundred sixty eight (168) acres of land, as described on Exhibit "A", together with 3 shares of Pleasant Valley Lake Canal Company (totaling 119.22 acre feet) for an amount not to exceed$1.9 million. Section 2. That the City Manager is hereby authorized to execute a lease agreement with Russ Jackson for a period of two (2)years for the continued use of the property as a residence and for farming and ranching operations. Section 3. That the Natural Areas Parcel shall be known as the"Hazaleus Natural Area". Section 4. That the Property, while owned by the City, shall be used solely as a public natural area,and that in the event that the City Council subsequently determines that it is in the best interests of the City to sell or otherwise dispose of all or any portion of the Property, the proceeds of such sale shall be dedicated to the acquisition or maintenance of other public natural areas. Section 5. The Fort Collins Housing Authority shall be granted a first right of refusal through February 29, 2000, to acquire the Development Parcel for an amount equal to the proportional share of the total acquisition cost attributable to the Development Parcel,together with interest thereupon from the date of the acquisition for a period of 60 days. Section 6. That if the Housing Authority declines to purchase the Development Parcel, the City Manager shall conduct a process to select a purchaser of the Development Parcel,which process shall emphasize the affordable housing benefits to be generated by the proposals received, and shall make a recommendation to the Council regarding the sale of the Development Parcel for development, including the terms and conditions of the sale. Section 7. That if the sale of the Development Parcel is not completed within one year of the date upon which the City acquires the same,the City Manager shall present to the Council an ordinance authorizing the transfer of appropriations from such funds as shall be determined to be appropriate at that time, to the natural areas portion of the Building Community Choices Fund, in an amount equal to the proportional share of the total acquisition cost attributable to the Development Parcel, together with interest thereupon from the date of the acquisition. Passed and adopted at a regular meeting of the City Council heldthis 2nd day of November, A.D. 1999. Mayor �— ATTEST: 1"IN) 0 City Clerk EXHIBIT"A" LEGAL DESCRIPTION SW %,and S %:of S %:of NW %.of Section 11,Township 6 N,Range 69 W of the 6'h P.M., less 3 acre road and 3 acre RR and less Book 1267 at Page 444.